Car salespeople often “read” customers as they step into your dealership. “The read” categorizes individuals based on things like facial expressions, body language, tone, and age before the initial contact.
This sales tactic also helps to identify the potential buyer’s generational placement. But why is generational placement important? How does multi-generation selling in automotive dealerships affect your bottom line?
Read on to find the answers.
What is Multi-Generation Selling in Automotive Dealerships?
Each generation comes with varied communication preferences, which can bring complications to a buyer’s journey. A dealership that relies on a “one-size-fits-all” sales and service approach is typically not as successful. Every member of your team should be able to communicate successfully across generations in order to maximize sales and customer satisfaction.
Here are the various generations you’ll encounter in your dealership, and some behaviors and trends you can expect from them.
Baby Boomers
The baby boomer generation was born between 1946 and 1964 and has more traditional values than other generations. Older members of the generation continue to drive and purchase new cars.
Baby boomers are remaining longer in the workforce than projected, so they have a flexible budget when shopping for a vehicle. However, they prefer doing business the old way, including:
- Firm handshakes and spoken commitments
- Face-to-face communication and updates by phone, which they equate with respect and attentiveness
- They value in-person relationships over other things
Generation X
This generation covers everyone born from 1965 to 1980. Over 64 million individuals are Generation Xers, and they represent 34% of the current workforce with five times more wealth than millennials.
These numbers show that the next potential buyer coming into your dealership is likely to belong to this generation. Generation Xers prefer phone conversations and email but are open to in-person discussions. A delightful experience and a strong first impression are most likely to convince this generation to develop a relationship with your dealership.
Millennials
Born between 1981 and 1996, this generation represents an often misunderstood population segment. Many dealerships are struggling to understand the thought processes and purchasing habits of millennials, while those who have cracked the code are experiencing outstanding success.
The millennial generation has had a significant contribution to technological advances. Over 83% of the generation interacts with businesses via social media. They also prefer communication through mobile apps and instant messaging.
A study conducted in 2012 predicted that millennials will ultimately wield the most spending power of any generation. This is coming true. However, the same study also predicted that 40% will not purchase a vehicle without first viewing consumer reviews and opinions.
Generation Z
The youngest generation of potential car buyers was born between 1996 and 2010. They share the same values and characteristics as millennials, but they have not experienced the pre-technology period.
They are young today, but Generation Z is sitting on a $140 billion buying power potential. Generation Z provides huge potential to cater to them through a customized and focused buying process. They love anything digital, including text messaging and social media, and prefer purchasing items with a technology component.
Vantage Finance Equips Your Team to Realize Results
Your sales staff must receive training to be attentive to the unique requirements of each generation. A one-size-fits-all approach will not work. Vantage Finance can help tailor your F&I solutions for multi-generation selling in automotive dealerships, maximizing your sales and profit margin.
Contact Vantage Finance today and learn more about our multi-generational F&I products and services.
